[Title] Decisions Concerning Bosnia and Herzegovina, Lyon Summit

We confirm our support for the Peace Agreement and the establishment of a democratic and pluralistic State of Bosnia and Herzegovina, composed of two Entities.

The prime responsibility for implementing the Peace Agreement lies with the different communities and their leaders. Without compliance and active participation in rebuilding a civil society, they cannot expect that the international community and major donor countries shoulder the main burden of the implementation and reconstruction effort.

Endorsing the conclusions adopted at the Peace Implementation Conference in Florence, we have taken the following decisions:

1. Elections and Institutions

- We shall contribute substantially to the preparation of the elections scheduled by the OSCE on 14 September 1996. To this end, we are increasing our assistance to the OSCE, inter alia by contributing to the deployment of 2,000 observers and the development of independent media.

- The Parties too must play their part and implement the full range of their commitments, including freedom of movement and association, free access for all the candidates to the media and effective arrangements for refugees and displaced persons to exercise their right to vote.

- We ask that IFOR's support for the election process be reinforced, including by creating a safe and secure environment, providing logistic assistance and concentrating IFOR's resources where necessary.

- We support the High Representative in his work of preparation with the Parties of the establishment of the new institutions: the collective Presidency, the Council of Ministers, the Parliament, the Constitutional Court and the Central Bank. We shall provide the future authorities with the necessary constitutional and legal assistance. We recommend that the duration of the first term of the institutions of Bosnia and Herzegovina and the Entities be harmonized, by agreement within all the institutions concerned.

2. International War Crimes Tribunal

- All States and Entities have an obligation under the Peace Agreement to co-operate fully with the Tribunal by taking action to arrest indicted persons. All persons indicted by the International Criminal Tribunal for the Former Yugoslavia should appear before the Tribunal in The Hague for trial.

- The presence in public office of indicted war criminals or any attempt by them to seek elective office are open violations of the Peace Agreement. We insist that Mr. Karadzic step down immediately and permanently from all public functions and take no part in governmental decisions. He should transfer all his powers completely to new leadership in the way provided for in the Constitution of Republika Srpska. New leadership of Republika Srpska should demonstrate their willingness to co-operate with the international community in implementing the Peace Agreement. This would enable the assistance available under it to flow to Republika Srpska.

- Recalling UN Security Council Resolution 1022, including the provisions on sanctions, we support the High Representative and the Commander of IFOR and will, as necessary, act following their recommendations. We are ready to consider the application of sanctions instruments to any Partie to the Peace Agreement.

- Consistent with this obligation of the Parties to co-operate with the International War Crimes Tribunal, we urge them all to implement a broadly based amnesty law.

3. Consolidation Plan

- Noting France's proposal for a 2-year plan of consolidation of the peace process, we endorse the request made by the Peace Implementation Council in Florence on the 14th of June for its Steering Board to elaborate an action agenda stating the aims, the means and the timeframe of this plan for civilian consolidation.

4. Reconstruction

- Economic reconstruction is vital to lasting peace. We call upon all donors to accelerate payment of their pledges for 1996 and to make every effort to disburse at least 50% of 1996 pledges by December 1996 and 100% by June 1997.

- Economic assistance should be provided to all Parties in Bosnia and Herzegovina depending upon their compliance with the peace process. After the successful holding of elections on September 14, it will be possible to take a decision on the holding of a further Donor Conference.

- We support projects which encourage co-operation and reconciliation. We call on the Parties to develop common economic structures and policies, including a Central Bank and new currency, a common customs policy, a unified payments system, the appropriate distribution of revenues among the State, the Entities and the Cantons.

- In this context, we look forward to the IMF engaging Bosnia and Herzegovina with the aim of reaching agreement on an economic stabilization and reform program.

- We confirm our full support for the High Representative in the exercising of his co-ordination role.

- We insist that high priority be given to mine-clearing operations, housing for refugees and job creation projects.

5. Refugees and the rule of law

- We demand that the Parties ensure that refugees and displaced persons can return freely and in safety. The early return of refugees will help accelerate the economic recovery of Bosnia and Herzegovina.

- We support the efforts of the UNHCR, including its plan for the return of refugees. The implementation of this plan implies the increase of voluntary contributions.

- IFOR will have to exercise continued vigilance with regard to freedom of movement.

- Reconstruction program should encourage the return of refugees. We recommend giving priority to 19 target areas in 8 regions of Bosnia and Herzegovina and thereby facilitating the return of 185,000 people by the end of this year.

- The question of property rights must be settled rapidly.

- In order to strengthen the rule of law, we are prepared to provide technical legal assistance. We shall ensure that the means available to the International Police Task Force and its effectiveness be increased.

6. Regional and Security Issues

- We stress the need to observe the timetable set by the Arms control Agreement signed in Florence on June 14. We shall provide the OSCE with the means to verify the Arms Control Agreement, and closely monitor its implementation.

- More rapid progress must be made to resolve the question of Brcko, beginning with the early agreement by the Parties on a third arbitrator. We urge the Parties to achieve a solution as soon as possible.

- We support initiatives to promote stability, good neighborliness and economic development in South-eastern Europe.

- We ask for the acceleration of the Working Groups' work on national and ethnic communities and minorities, and on questions of succession, and we call upon the States concerned to co-operate fully with them.

7. These decisions should be implemented within the framework of the structures put in place by the Peace Agreement.