Report on the Meeting of the Stability Pact's Third Steering Committee on Refugee Returns

The Stability Pact's Steering Committee on Returns held its third meeting in Zagreb on June 20. The session was chaired by Hans Koschnick and co-Chaired by UNHCR representatives Jacques Mouchet and Werner Blatter. Representatives from Austria, Bosnia and Herzegovina, Canada, Croatia, the European Commission, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, the USA, the UK, IOM and OHR attended the session.

Croatian Foreign Minister Picula opened the meeting and outlined steps his government has taken to support the return process. These actions include the amendment of laws to provide greater emphasis on property rights, the conclusion of an agreement with representatives of the entity of Republika Srpska in Bosnia-Herzegovina on cross border returns and a 30 million Euro loan from the Council of Europe Development Bank to support return related projects. Minister Picula noted that return process was accelerating and asked for the international community's increased help to support this positive development.

Steering Committee Chairman Koschnick provided an overview of his recent visits to return areas in Croatia and Bosnia-Herzegovina. He felt that there had been a very positive change of attitude and was encouraged by developments in areas such as Slavonia, where significant returns had taken place and a new factory had been established providing employment opportunities for Serbs, Croats and other nationalities. Koschnick praised the Croatian government for the legislative changes it has introduced to facilitate the return process and the credit it negotiated with the Council of Europe Development Bank. He also welcomed the improved climate in Bosnia-Herzegovina where returns were taking place in areas that would have been considered impossible one year ago. He noted his just concluded visit to Banja Luka and Prijedor where he was able to inspect an EU funded project that was constructing 350 homes for returnees. This had facilitated the return of 1,000 Bosniacs to a region where the war had been particularly brutal. Many more good examples such as this were needed. Koschnick urged the donors to continue and expand their support for re-construction activity and to make maximum amounts available to facilitate construction before the beginning of winter. He also endorsed support for de-mining initiatives to be coordinated with return projects.

Stability Pact Deputy Special Coordinator Kursch gave a brief summary of the Stability Pact's Regional Table Meeting in Thessaloniki on June 8 noting, in particular, that Canada, Japan, Norway and Switzerland had become full participants of the Stability Pact. He welcomed the active participation of all four countries in the Steering Committee.

UNHCR confirmed that the number of returns had grown significantly. There had been 6,000 organized returns to Bosnia-Herzegovina thus far in the year 2000 and spontaneous returns were estimated to be three times as high. Another positive trend was that more young persons were returning. UNHCR stressed that more resources were necessary to support this development and asked the donor community to help find resources to construct 11,000 houses in order to meet demand from those who have returned in 1999 and 2000. Building materials and technical advice were also urgently needed to assist those who wished to construct their own homes. UNHCR also called for flexible funding and timely disbursement. They stressed that the years 2000 and 2001 were crucial for the return process and provided an unprecedented opportunity to achieve success.

UNHCR asked donors to give particular attention to de-mining programs in connection with returns. Over 1 million land mines remained in Bosnia-Herzegovina. In addition, empty houses needed to be examined for unexploded ordinance. He noted that UNHCR had developed specific proposals to deal with this problem.

The Croatian delegation stated that 7,446 new returnees have been confirmed during the first five months of this year. In addition, it is estimated that there have been more than 20,000 spontaneous returns during this period. Croatia highlighted recent changes in legislation to facilitate the return process including Amendments to the Law on Reconstruction, adopted on June 1, and Amendments to the Law of Special State Concern, now under consideration by parliament. They also said that more efficient procedures to expedite the repossession of property are being developed and that issues relating to illegal and multiple occupancy will be addressed as a priority. To support the return process Croatia would match the 30 million Euro loan from the Council of Europe Development Bank with an additional 30 million Euro of state budget funds to be used for reconstruction of housing and communal infrastructure.

Croatia noted the status of the bilateral agreement on returns with the Bosnian entity of Republika Srpska on March 9. In the 90 days following the signing 2,103 applicants had registered to return. Of these 722 had actually returned to Croatia as of June 9. However it was estimated that the actual number of returns was twice this figure. They noted that the first meeting of the Croatian and Bosnian Mixed Task Force took place on May 8 to consider further cooperation on return related questions and would continue to meet on a monthly basis.

The Bosnian delegation stressed that the problem of refugees continued to be of enormous proportions. There were still 1.2 million refugees in Bosnia-Herzegovina and 670,000 persons from Bosnia-Herzegovina in third countries. Returns were accelerating and were three times the level of 1999. Political obstacles that had blocked returns in the past had largely been removed and were no longer serious deterrents. The major problem was now financial. There were about 500,000 refugees registered abroad who have indicated their wish to return to Bosnia.

The Netherlands noted that it had committed 20 million Euro for projects in Bosnia and hoped to spend 15 million of this in calendar 2000 with the remaining amount in the first quarter of 2001. In Croatia 2.5 million Euro were available and good projects were being sought with emphasis on immediate reconstruction and agriculture. There was also a possibility of additional funding for high priority projects. The Netherlands was also active in the area of de-mining and intended to make a commitment of about 2 million Euro. In response to the UNHCR request for donor assistance for the construction of 11,000 additional houses in Bosnia, the Netherlands Embassy in Sarajevo would be prepared to provide some additional support.

The European Commission representative noted that the EU was stressing rapidity, flexibility and sustainability in its return assistance programs. In Croatia 11.5 million Euro of the 1999 Commission return assistance package was being implemented while a remaining 2.3 million would be finalized soon. There was also 2 million Euro available in microcredits for start up activities in Croatia, a program that the EU was prepared to extend to Bosnia. The 2000 budget would be presented to member states on June 28. It was hoped that this budget would be approved by July and the money for individual projects would be available in September. In Bosnia there were contracts to utilize 69 million Euro of support offered in the 1999 assistance package. The EU was now in the process of finalizing contracts to make use of the resources from the 2000 budget. It was expected that these would be concluded in the next ten days. This package contained 50 million Euro for return projects in Bosnia, 3 million Euro of which had been allocated for cross-border projects.

Sweden noted that its total assistance to the Balkans was approximately $42 million in 1999 and that the 2000 budget would raise support for the region by about 50%. The Swedish representative promised to provide a more precise summary of the amounts specifically available for refugee returns to the Stability Pact secretariat in the near future. He highlighted a specific reconstruction effort by the Swedish development agency (SITA) that would spend 3 million Euro to construct homes and provide livestock for 600 families.

The Czech Republic asserted that it made committed approximately 236 million Czech Crowns (6.6 million Euro) for supporting the return process. The precise amount and how it would be allocated would be confirmed to the Stability Pact.

In the absence of a German representative Chairman Koschnick noted the German government's commitment of 24 million Euro in support for returns. He said that he would be pressing Germany to see if it might be possible to increase this amount.

Austria noted its .73 million Euro quick start package contribution. This would be used to reconstruct apartment blocks near Vukovor for 50 families from different ethnic groups.

Canada said that its assistance programs had not supported reconstruction to date. There was, however, a strong commitment to de-mining activity that would be continued and could be coordinated with return programs. Canada expected to spend US $6.7 on de-mining activity in the region over the next five years.

The U.S. said that its total assistance package for refugees in Bosnia amounted to $67 million. Of this $12,5 was for housing reconstruction. Contracts for reconstruction using these funds were expected to be signed this month. In Croatia there was $6 million budgeted for return and reintegration and $7 million for infrastructure. There were also substantial additional amounts for both Bosnia and Croatia to support UNHCR programs that were awaiting the approval of the U.S. Congress. The U.S. was also providing support for de-mining actions through the foundation established by Slovenia.

Switzerland noted its 0.65 million Euro equivalent project to support this year's returns to the entity of Republika Srpksa in Bosnia, a 1.3 million Euro project in Knin and 0,65 million Euro projects in support of cross border returns.

Japan was unable to provide precise details on the scope of its programs but asserted its intention to continue to give support for returns through UNHCR and IOM and to assign a high priority to de-mining activity. The Japanese delegate said he would ask his government to provide additional details to the Stability Pact.

Italy was also unable to provide a breakdown to its levels of support for returns but noted that it provides de-mining assistance.

The UK noted its 33 million Euro equivalent assistance package for Bosnia of which 4 million will be used to help small and medium sized business. In Croatia assistance efforts were aimed at projects such as bank rehabilitation and the reform of the health insurance and land registry systems. 1.5 million Euro was being made available for quick start including 0.35 million for reconstruction of private buildings. De-mining activity in Croatia would receive .35 million.

Participants discussed the question of improving donor coordination noting that this should receive priority attention. Croatia noted that it had established a board for coordination with several new working groups. Alfons Peeters of the EU mandated ASB initiative offered his organization's good offices to improve coordination efforts in Croatia and said that a meeting on July 12 would take place in Zagreb for this purpose. He stressed that his efforts would focus on working with municipalities to insure acceptance of return programs by all members of the community and not only returnees.

Bosnian representatives expressed their readiness to work more closely with Croatia thorough the newly established working group on returns. They also expressed their desire to become a full member of the Sarajevo based Return Task Force. In response to the Chairman's question about the Bosnia's new Ministry of Refugees, the delegation expected approval by Parliament within days. However, the question of resource levels for this Ministry had not yet been clarified.

The Stability Pact Deputy Special Coordinator asked all steering committee participants who had not yet done so to provide information on current funding levels and priorities for return programs to the Stability Pact secretariat by July 1. An update of this information was from all participants should be provided by September 10, a week prior to the next meeting of the Steering Committee. Information should be sent by E-mail to Ginette Rooz (address) or faxed to Ms. Rooz at 32-2-401-8712. The Steering Committee accepted Chairman Koschnick's proposal to hold the group's next meeting in Brussels on September 19 in the Stability Pact offices at Rue Wiertz 50. After hearing a proposal by the Bosnian delegation to host the Steering Committee, the Chairman proposed that a follow-up meeting of the Steering Committee take place in Sarajevo in December. The Committee accepted this proposal.