Visit by Hans Koschnick to Zagreb

Steering Committee Chairman Hans Koschnick visited Croatia/Zagreb from 5-7th of February in order to meet government representatives, update himself with recent developments in regard to refugee matters and to attend a regional NGO meeting on returns. He was accompanied by his Personal Assistant Julija Pezer and Kilian Kleinschmidt, Executive Secretary of the Steering Committee on Refugee Matters.

The consultations and exchanges with a range of government, donor and NGO representatives confirmed that progress in regard to the removal of obstacles to return had been made in Croatia and that an overall commitment to facilitate return had been demonstrated by the government, but that considerable practical issues mainly on local level still continue to affect the smooth and impeded return of mostly Serb minorities. The political fragility of the coalition negatively affects the timetable of further legal reform required in order for the government to primarily enforce property repossession and evictions on the ground. Amnesty and access to social rights remain other issues of concern. While crucial to the return process, unpopular decisions in housing management questions may endanger the government at present and may be deliberately delayed until the tenure of the local elections scheduled for June 2001. However, the demonstrated and public readiness of the Croatian government and representatives from neighboring states to address and resolve refugee issues jointly in bi-lateral and regional discussions and agreements, are most encouraging and warrant immediate support through the SP.

It transpired that the gap in available resources to cover current requirements for reconstruction and alternative accommodation in Croatia and Bosnia alone, however, can not and will not be resolved through current grant or loan schemes. Should legislation be further improved and property rights be unilaterally recognized, return numbers will increase ñ also due to the improved political environment. This may lead to a hidden humanitarian crisis in the region. Many returnees, mostly as consequence of spontaneous and self organized returns, already live in destroyed houses and have to wait for years in inhuman conditions, or give up and return to their former place of refuge. A considerable increase and linkage to social housing and creation of income generating activities must be established and ways for better housing stock management be found most urgently to avoid this crisis.

1. Meeting with National Coordinator and Deputy Minister of Foreign Affairs

In his first meeting on the 5th of February, Mr.Koschnick and his team met with Zelko Kupresak, the National SP Coordinator (Foreign Affairs), Branco Socanak, Head of the Human Rights Department and Maja Rosenzweig, (SP Department). Mr.Matek, Deputy Minister for Foreign Affairs, joined later.

Both sides emphasized the need for activities and initiatives under the 3 WT to be linked, in order to allow sustainable return to occur. The fact that economic development was most crucial at this stage was discussed, however recognizing that not all return areas presented the same opportunities in a rapidly changing economic environment. The Krajina region for instance offered certainly a less encouraging environment for investment than Eastern and Western Slavonia. Urbanization was a reality and most returnees to rural areas were old and unfortunately more a burden to the weak social systems than a catalyst to rapid recovery. In this context all agreed that many of the active population would probably opt to remain in their current locations and integrate locally in the areas or countries of asylum, but that the return option had to remain possible at any moment and was still the objective.

The Chairman repeatedly stressed the importance of regional cooperation and the need for harmonization in questions such as property rights, social rights and citizenship which would firstly be facilitated by better exchange of information. There was a great need for State-to-State or regional contacts and possibly agreements on these matters. This had become possible with the developments in FRY and he would support and promote any such initiatives, as this remained the key to a lasting solution to the problem of displacement in the region. Donors would welcome these contacts and hopefully substantially support a regional approach. A combination of grants and loans in an integrated approach would resolve some of the current gaps. An area-based approach could be developed and proposed in geographical zones such as the Danube region and others to focus international and national efforts.

Both, Mr.Kupresak and Mr. Matek, confirmed that there were no political obstacles to return and that legal reform, where needed, was underway, particularly in the area of property legislation and management. Considerable progress had been made in regard to return and the resolution of issues affecting return, but that despite initial donor promises, resources were lacking to realize the Croatian commitment for implementation of concrete measures such as to provide adequate housing for returnees and alternative accommodation of evicted temporary occupants. The economic situation in most return areas was not conducive to allow sustainable returns and considerable investment was needed to revive the economy.

Mr. Matek recalled that Croatia was the only affected country actually budgeting for reconstruction and support to returnees and had also obtained a loan of 30 MEURO from the European Council Development Bank for this purpose. He emphasized the difficulties faced by his government in budgeting for return while the IMF imposed drastic budget and expenditure reductions. He stressed that current social and economic tensions presented high risks for the stability in Croatia and that the international community needed to understand his government. Tangible results were needed to satisfy the population. Mr. Kupresak and Mr. Matek expressed also their dissatisfaction referring to the fact that there had been several donors conferences for BiH and that preparations for a donors conference for FRY were underway. Croatia had not been considered so far for a separate donor conference despite the considerable democratic progress made.

Mr. Matek confirmed that bi-lateral contacts had taken place with the governments in FRY and BiH and more discussions were planned for the near future. Besides the normalization of political and economic relations, refugee related and illegal migration issues had to be discussed and that a regional approach was most welcome and needed.

The meeting with Mr. Pejkovic, held on the 6th of February 2001 in the premises of the ODPR, addressed details of the current impediments to return and technical issues more in detail, while Mr. Koschnick retraced the positions taken the previous day in the discussions with Messrs. Kupresak and Matek.

Mr. Pejkovic reiterated the financial difficulties linked to the implementation of property legislation and reconstruction. In 2001 alone, some 6000 alternative housing units would have to be identified or constructed to cater for illegal occupants, out of which funding for some 2000 was secured through various sources; applicants for reconstruction under the governmentís program had now to wait for up to 4 years and many more would apply before the 31st of December, being the final deadline for all applications, hence requiring even more resources. He described the dramatic economic situation in the return areas and outlined the urgent need for economic revitalization. Subsidies and tax exemptions by the government for private companies involved in such areas had not lead to the desired rise in investment. Accepting a return of all refugees into urban areas instead of return to their rural places of origin and engaging consequently in urban development was not an acceptable option for his government and should be avoided, he stated.

In his opinion adequate steps were underway to resolve the last outstanding legal issues, although implementation on the local level remained difficult, but he also thought that time was needed, referring to considerable frictions with the OSCE in regard to the proposed reform time table, considered to be too slow from the OSCE perspective.

In reference to the reported arrests upon return he stated that all return applicants could have their criminal records checked by the Ministry of Justice within a delay of 2-3 weeks. He claimed not to be aware of the alleged ìwave of arrestsî, but only of 4-5 cases. He was urged to ensure a high level of transparency to avoid the negative effect on return intentions of such reports.

He most welcomed a regional approach and said that a return agreement with Bosnia was desired and envisaged and now that the normalization with Serbia and FRY was well underway, such an agreement could be finalized with FRY confirming the operational procedures already in force for return. UNHCR, as the specialized agency, would of course be part of the bi-lateral return agreements. He agreed that property, citizenship and social rights would need to be harmonized and agreed upon regionally or at least on State-to-State level. Exchange of information on returnees and property reconstruction and repossession linked to re-registration of the displaced and refugee population was an important element to be included in any bi- or multilateral discussions.

3. EC/UNHCR organized NGO Meeting on Return

The EC Delegation in Croatia and UNHCR had invited for a consultation of NGOs, government officials and donor representatives on return issues in Croatia. The meeting took place on the 6th of February 2001 in Zagreb, bringing also together government representatives from the 3 affected countries. Bosnia was represented by two advisors from the Entity refugee ministries and the Assistant Minister for Human Rights and Refugees on State level, Mr. Mario Nenadic, while FRY was represented through the presidential advisor to President Kostunica, Mr. Petar Ladjcevic. Various representatives from the Croatian government including Mr. Pejkovic, the head of the ODPR, attended to respond to questions from the participants.

After briefings on the situation in the three affected countries, Mr. Koschnick, spoke to the assembly, reiterating the importance of refugee issues to the stabilization of the region and therefore to the Stability Pact, and particularly outlining the need to actively pursue efforts for return, while recognizing the desire of many to remain and integrate locally. A regional approach had become necessary and possible.

Following the presentations a discussion between the participants highlighted the persisting problems in returns. Numerous organizations, mostly implementers of return projects raised questions and challenged the Croatian representatives on a number of practical obstacles to return.

Besides the expected issues of repossession, privatization, delays in processing of claims and documents, and misunderstandings in procedures, problems in obtention of citizenship, the application of amnesty and access to social rights were raised. Mr. Pejkovic and a representative from the Ministry of Justice responded though not always to the satisfaction of the NGOs requesting precise answers to very specific questions at times.

Of particular importance were the repeated calls for bi-lateral agreements and a regional framework to address issues of common interest. This was specifically raised by the advisor to President Kostunica, Mr. Ladjcevic in his address to the assembly qualifying such a process as ìessentialî.

4. Meeting with Serb Democratic Forum

A meeting with representatives from the Croatian branch of the Serb Democratic Forum was held on the 7th of February. While the SDF recognized a considerable decrease in the tensions in general, allowing a momentum for return to develop, conditions for return to Croatia were not yet given, according to their evaluation of the situation. The legal required framework had first to be created and obstacles on the ground remained substantial. Property exchanges effected during the war had to be regulated properly and many Serbs had lost their right of use. The economic shortfalls in return areas were considerable and if support was given, it had also to be provided to the Croat local population in an area based approach; the population in general being affected by the economic crisis. The SDF requested Mr. Koschnickís support in negotiating the right to vote in their home villages for displaced Serbs in the forthcoming local elections in June. The number of Serbs living in Croatia to date is now estimated at 300.000 out of 600,000 registered during the last census according to the SDF.

Mr.Koschnick stated clearly that he would not get involved in the election issue but would promote a regional solution to property and other issues raised by the SDF. In regard to the economic needs in return areas he thought that the changing economic environment and the expected changes in view of the likely EU extension to Croatia in the years to come, may warrant short term measures in the agricultural sector, being the main activity for many returnees.

4. Meetings with EC and NGO Representatives

During his stay the Chairman met with the Alfons Peters from the EC, a delegation from ìHilfe Konkretî and the Baptist mission in Croatia as well as the head of the ASB in Croatia, Mr. Wolfgang Gressmann, to discuss general return questions and the ongoing support programs.

Kleinschmidt/Brussels/12 February 2001