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The stabilization and reconstruction of Yugoslavia - a ten-point programme

1. Intensifying political dialogue

After many years of political isolation, Yugoslavia must be given help to regain its rightful place in the international community. The aim must be its progressive re-integration into international structures, with the genuine prospect of EU and NATO membership once the necessary criteria are fulfilled. Political dialogue must be rapidly established both at government and parliamentary level. Yugoslavia must be given support so that through confidence-building measures, the mistrust which is endemic in the region after many years of conflict and war can be dismantled. The ultimate goal is Yugoslavia's full re-accession to the international institutions. The new Government's willingness to renounce the Miloševic regime's claim to be the sole legal successor to the former Yugoslavia is very helpful in this context.

2. Integration into the Stability Pact

The integration of a new Yugoslavia into the Stability Pact was a generally accepted political goal of all the Pact's participants from the outset. It is to be welcomed that the Special Coordinator of the Stability Pact, Bodo Hombach, was able to effect Yugoslavia's speedy inclusion in the group of countries participating in the programmes. This opens up the opportunity for Yugoslavia's integration in future, not merely as a passive member but as an active participant whose personnel and institutional commitment is commensurate with its significance in the region. As a beneficiary country, Yugoslavia expects prompt assistance with reconstruction, especially in repairing the infrastructural damage caused during the Kosovo conflict. In this context, re-establishing navigation on the Danube far beyond Yugoslavia's borders will be a priority for the region as a whole. As a major source of instability in the Balkans for many years, Yugoslavia will have to do its homework, especially in Working Table III (security issues). In particular, it could play a key role in mine clearance in future, since the majority of the live mines still present in the region were laid by the Yugoslav army. In light of their understandable expectations of restitution, the people in the region are hoping for clear signs of improvements in regional security from the Yugoslav Government.

3. A second Regional Funding Conference for the Stability Pact

There are real fears among the other Stability Pact countries that they will lose out as a result of Yugoslavia's inclusion in the Stability Pact. To avert this risk, and to cover the additional financial burdens which will inevitably arise, a second Regional Funding Conference for the Stability Pact must be convened. It is in all the donor countries' interests to stabilize Yugoslavia as quickly as possible, since its democratic transformation is still very precarious. Rapid successes and tangible improvements for the people are the only way to prevent Yugoslavia from remaining a risk to stability in the long term. This new Funding Conference should be convened in line with the usual procedure once Yugoslavia, in cooperation with the Stability Pact office, is able to submit a sufficient number of viable and evaluated projects. The criteria applicable to the first round of measures funded through the Stability Pact should continue to apply. Under no circumstances should there be a Funding Conference for Yugoslavia alone; instead, the second Conference should promote the programmes for the region as a whole.

4. Urgent assistance and bilateral development cooperation

Now that the sanctions have been lifted, bilateral relations will (re-)commence with Yugoslavia in a range of areas. This should include development cooperation. Yugoslavia should be added to the Federal Ministry for Economic Cooperation and Development's list of priority countries, at least while reconstruction is still under way. Government negotiations to this effect should therefore begin as soon as possible. The projects which the Ministry will fund from the Stability Pact's resources will generally comprise "quick start" projects which focus on urgent assistance. The government negotiations should therefore also aim to develop a country-specific programme for Yugoslavia, designed to promote longer-term development and reconstruction. The Federal Government's offer of urgent assistance totalling DM 50 million to the new Yugoslav Government, to take effect before the start of winter, is to be welcomed.

5. Investors' conference

A devastated country like Yugoslavia cannot get back on its feet through aid projects alone. What is required is private investment - not as an "add-on" but as an integral measure - to breathe new life into the economy. As international investment capital is limited and tends to be wary of risk, a great deal of persuasive work will be needed among all potential investors. An investment conference should therefore be convened as soon as possible to provide interested persons and institutions with information about the opportunities and risks associated with investment in Yugoslavia, and to offer advice and support. The conference sponsors could include the international financial institutions, and also business organizations such as the Association of German Chambers of Industry and Commerce (DIHT) and the Federation of German Industries (BDI), etc. As a follow-up to the conference, a permanent office should be set up to provide the necessary services and support for potential investors and their Yugoslav partners over the coming years.

6. Intensifying twinning links

It would not be overstating the case to say that Yugoslav citizens' positive experiences in cities which benefited from the City Partnership Programme clearly lessened the impact of Miloševic's propaganda and greatly facilitated the democratization process. In order to give lasting support to the new and very fragile democracy in Yugoslavia, this tried and trusted instrument should be strengthened and given speedy and generous assistance. This includes expanding the number of city twinning links and intensifying individual partnerships wherever possible. The great success of this type of "grassroots foreign policy" - to quote the German coordinator of the City Partnership Programme, Josef Vosen - should be an incentive for many other towns and cities to increase their involvement in this area of activity.

7. Reviving contacts with former GDR companies

The former Yugoslavia maintained longstanding links and cooperated closely with the former GDR in many sectors of industry and commerce. Many of the companies involved, and very many of the cooperation partners, still exist, so these links could be revived at any time. The advantage for the Yugoslavs is that they could start afresh with familiar and trusted partners; for the ex-GDR companies and specialists, it would offer an opportunity to re-activate the markets and client contacts which were lost a decade ago. A study should therefore be carried out in cooperation between the Yugoslav organizations and East German Chambers to identify areas in which this once very fruitful form of cooperation could be revived.

8. Intensifying the work of the political foundations

Miloševic's fall from power is simply the first step in Yugoslavia's transformation. In order to create a civil society in line with Western standards, enormous socio-political challenges must still be overcome. The political foundations are a particularly suitable instrument in this context. They must commence/expand their work in Yugoslavia as a matter of urgency. The necessary resources must also be made available.

9. Reviving cultural contacts

Cultural contacts, which were restricted for many years, must be revived immediately. In the cultural field, too, special priority must be given to reconciliation. In the successor states to the former Yugoslavia, national cultures have emerged in which separateness from Serb(ian) culture is often a particularly strong element. Cultural collaboration with the countries throughout the region should therefore help to establish contacts between the various national cultures which emerged from the former Yugoslavia's uniformity, and also with the culture of the new Yugoslavia. This would make a significant contribution to dismantling overt and latent nationalism throughout the western Balkans. A particularly important step is to set up a joint educational materials conference to ensure that the education offered to future generations is free from the prejudice and hatred caused by nationalist interpretations of history.

10. Initiating disarmament measures

In the past, for a variety of reasons, Yugoslavia maintained one of the largest and most heavily-armed military forces in Europe. As we have seen, this massive potential caused devastation in the wars and conflicts of the 1990s, and is still considered to be a significant and alarming threat within the region today. The arms agreements contained in the Dayton Accord have not led to genuine disarmament, but have tended to consolidate this potential. The Kosovo conflict showed that Yugoslavia still possesses substantial military resources. Regional stability can therefore only be achieved if substantive and verifiable disarmament measures are enforced in Yugoslavia. Pressure must be brought to bear in all negotiations with the new leadership in Belgrade to achieve this goal. It may be useful to examine to what extent specific disarmament measures by Yugoslavia should be made a precondition for the West's generous assistance with reconstruction.