At the outset, allow me to extend my heartfelt congratulations to the President on his election to the high office from which he will guide the work of the fifty-first session of the General Assembly. I am confident that his diplomatic experience and commitment to the noble principles of the Charter will impress upon this session new commitment, determination and vigour. I would also like to express our gratitude to his predecessor, Mr. Diogo Freitas do Amaral of Portugal, for the skilful manner in which he presided over the work of the fiftieth session. After having been the focus of the international community’s attention for a long time, due to its being exposed to aggression and to its being part of the most serious regional crisis since the Second World War, Croatia has now entered a new era of its history as a free, sovereign and fully independent State. Croatia is now in a position to deal with and resolve almost all its external and internal affairs with its own resources, and through close cooperation with the international community as an equal partner. It gives me great pleasure, therefore, to be able to lead the Croatian delegation at the fifty-first session of the General Assembly with the strong conviction that the time of war is finally behind us and that in the region of south- east Europe, Croatia is no longer a part of a larger crisis, but rather an active and decisive agent of introducing the final solution to the crisis and the emerging international order. In this connection, our external and internal policies are becoming increasingly peace-oriented and development-focused. So far Croatia has been successful in dealing with the question of its statehood and the right of small nations to full self-determination, as well as in defending these rights within the framework of and through the United Nations. We are enormously grateful to this noble institution and its associated agencies, and especially to those Member States whose sons and daughters are exposed to risk, in some cases giving their lives, in a noble endeavour to assist us in ending the horrific war of aggression against our country and in the wider region. Croatia has played host to one of the largest, most expensive and complex peacekeeping operations in the history of the United Nations. Croatia’s Government and people, the hundreds of thousands of displaced persons and refugees in particular, have on many occasions been critical of the ineffectiveness and ambiguity of peacekeeping mandates. Today, however, the war has ended, and we are finally coming to terms with all of the political, economic and procedural constraints which the international community had to overcome in order to 23 properly react to the aggression, the calamity of war and the diplomatic uncertainty resulting from the breakup of the communist federation of Yugoslavia and the security vacuum resulting from the closure of the cold-war era. Croatia and Bosnia and Herzegovina indeed paid a high price for their struggle to ensure their survival, alongside the progressive efforts of the international community to develop a new concept of the United Nations and other international mechanisms for the peaceful resolution of conflicts. However, we believe that our experience has given a very positive impetus to the intrinsic need to reform the general concept of peacekeeping operations, the work of the Security Council and the changes in the regional, political and security systems in Europe as well. Even though the mandate of the joint peacekeeping forces in Croatia has not yet ended — 5,000 peacekeepers are still working in the Croatian Danubian area — I wish to convey to the Assembly the optimism of my Government for the successful completion of the mandate of the United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES) there. This operation just may become the most successful peacekeeping operation in recent history, and perhaps rightfully so, given our own and international frustrations with the unsuccessful attempt at peacekeeping and peacemaking in the region so far. The successful completion of the UNTAES operation is becoming ever more likely given the recent signing of an agreement on normalization of relations between the Republic of Croatia and the Federal Republic of Yugoslavia and the establishment of a new balance in the region, the same balance that helped the international community forge the Dayton Peace Agreement. We are grateful to all Member States that supported our appeals and calls in the General Assembly for universal respect of international law — as reflected, for instance, in General Assembly resolution 49/43, which created the political conditions and legal framework for the peaceful reintegration of Eastern Slavonia. We are also grateful to Member States whose diplomats and soldiers are more directly involved in the successful implementation of the UNTAES mandate. Thanks in part to General Assembly support for the universal principles enshrined in the Charter and in part to the intervention of United Nations peacekeeping forces, the countries which emerged following the dissolution of the former Yugoslavia are now increasingly heading towards the objective of peacefully resolving mutual problems on a bilateral basis and through regular multilateral contacts, thereby lessening the need for international involvement and mediation. Those problems include the succession to the former State; regional security arrangements and arms control; the search for missing persons; reciprocal minority rights; and the reestablishment of bilateral economic, cultural and other forms of cooperation. The successful expansion of bilateral neighbourly relations based on internationally accepted principles cannot be replaced by the imposition of superfluous and ambitious regional associations. Taking account of this new reality, in which Croatia and the Federal Republic of Yugoslavia are prepared to resolve all their outstanding problems on a bilateral basis as two equal and sovereign States, the need for the continued presence of peacekeeping forces in Croatia has come to an end. Any further extension of the UNTAES mandate in Croatia can only encourage delays in its implementation and place at risk the most critical aspect of the mandate: the return of 80,000 Croatian and non-Serb refugees and displaced persons to the region. The continued lack of tangible progress in this area could induce internal and external instability; this is a matter which my Government and the international community should seek to avoid at all costs. For this reason, the clear stance of my Government is that the peaceful integration of the region under the present UNTAES mandate should be completed on schedule. With the signature of the normalization agreement between Croatia and the Federal Republic of Yugoslavia, the small United Nations Mission of Observers in Prevlaka, Croatia, will also become obsolete in the foreseeable future. Croatia and the Federal Republic of Yugoslavia have agreed that the issue of Prevlaka is to be dealt with and fully resolved as a security matter, in accordance with the United Nations Charter and the policy of good-neighbourliness. Therefore, there shall be no further raising of the question of territorial adjustments between Croatia and the Federal Republic of Yugoslavia on the Prevlaka peninsula, the five-century-old boundary line between Croatia and Montenegro. However, there is a need to establish a security regime there through peaceful negotiations with a view to the mutual benefit of cross-border economic cooperation. 24 On the basis of the new reality, Croatia’s foreign and internal policy priorities will now aim at compatibility with and timely integration into European regional organizations. At the same time, we remain cognizant of our responsibilities in respect of the peaceful and successful stabilization of neighbouring Bosnia and Herzegovina, in which Croats are one of the three constituent peoples. The process of the internal stabilization of Bosnia and Herzegovina will take years and, in this regard, Croatia is fully open to cooperation and collaboration with the international community. The community’s presence and assistance there has been significantly less costly to it thanks to Croatia’s resources and contributions. Following the initial reconstruction assistance for Bosnia and Herzegovina, an economically viable Croatian State can make the greatest contribution to the viability of the Bosnian Federation and to Bosnia and Herzegovina as a whole. Croatia is prepared to recognize the results of every democratic political process between the three constituent nations and the two entities in Bosnia and Herzegovina and will continue to give its full support to the successful implementation of the Federation Agreements. Croatia, fully supportive of a properly balanced Federation as defined at Dayton — the 1—2—3 formula: one State, two entities, three constituent peoples — seeks not only to ensure the survival of the Bosnian Croats as a constituent people in all respects, but also to avoid any situation that could lead to a threatening instability in the region as a whole. In that sense, any attempts to change the constitutional definition of the Federation or to achieve the same results through institutional or power-sharing arrangements are unacceptable to the Republic of Croatia as a party to the relevant Agreements. The same applies to any attempts to change the present entities settlement through an over-centralization of Bosnia and Herzegovina. Any territorial adjustment at the expense of Bosnia and Herzegovina or its two entities shall be viewed as highly detrimental to the stability of the region in general and considered a threat to Croatia’s security. As Croatia continues to move to reestablish its European way of life, while at the same time bringing its young democracy and its governance into conformity with the new European democratic reality, constructive criticism of its actions and attitudes will continue to be taken in good faith. By now, we have accepted the fact that, owing to the needs of the multilateral crisis-management process in the region, the standards set for Croatia in many areas of democratic development are much higher than for other countries in transition. Croatia’s extraordinary openness to the innumerable institutions that monitor developments on our soil, especially in the field of human rights, attests to the transparency of our policy and to our deep commitment to democratic values, tolerance and individual rights. In renewing our expressions of gratitude to the United Nations for its contribution to the successful resolution of an act of aggression against a Member State, we should like to express the readiness of our country, which now has a wealth of experience in peace-mediation efforts behind it, to contribute actively to similar United Nations efforts outside our region. We should now like to become active in the other regular activities of the United Nations and regional mechanisms, to which we offer our experience and experts, to further the common interests and ideals of the Charter of the United Nations. Croatia is actively following the reform process of the United Nations system, and actively participates in some aspects of reform. We fully recognize the need to reorganize the system and adapt it to the changing international system. New objectives are already clearly defined in the socio-economic sphere, and the area of human rights in particular. The United Nations is faced with new realities and problems centred around its goal of promoting the rights of the individual while preserving the identity of groups and nations and respecting the sovereignty of Member States. We are following with particular interest the process of resolving the financial crisis of the United Nations. As a small State that has experienced exceptional financial needs and shortfalls over the past five years, Croatia supports efforts to find a more equitable scale of assessment for Member States that are experiencing extraordinary situations and whose capacity to pay has, accordingly, changed significantly. Croatia has already spoken in favour of reforming and strengthening the United Nations system, and especially the Security Council. Our position takes into account new realities in which economic powers such as Germany and Japan, but also individual regions and States — and their views — must be more justly represented. Therefore, Croatia firmly supports the expansion of the Council to 25 members in both categories of membership. Greater transparency in the work of the Council is also essential, and should be achieved through the adoption of new rules of procedure. The Organization will also be strengthened by the present 25 discussions on changes in general procedures, that will, inter alia, reduce and rationalize the costs of overlapping activities of various United Nations institutions. We especially support efforts to rationalize and restructure the socio-economic sector of the United Nations so that it can continue to achieve its rightly ambitious goals around the world. In its post-war foreign policy and economic activities, Croatia will firstly associate with countries on its continent, but will also strive towards diversification of its relations. Croatia wishes actively to contribute to the promotion of the common interests of small and, especially, new States. We are pleased to note that apart from the trend towards institutionalizing regional development and functional cooperation, we are entering an era in which States are increasing their level of cooperation, through multilateral diplomacy, on basic development questions, such as: the environment; developing the laws of the sea; enforcing international humanitarian law; protecting human and minority rights; protecting the rights of women and children; promoting disarmament and non-proliferation; and sharing knowledge and resources to help the development of the Third World. We are, therefore, passing over old ideologies, religious or regional affiliation and loyalties. One area in which Croatia will be especially active is the establishment of the international criminal court. We will be one of the sponsors of a draft resolution calling for the timely establishment of this institution. The world we live in is entering a stage of national individualization but also of ever-closer functional cooperation between States in creating a stable and interdependent new order. Croatia, as a young State that still harbours painfully fresh memories of its struggle for its identity, freedom and right to economic development, sincerely wishes to contribute to the establishment of this new order by actively helping to find solutions to other crisis points, development problems, and disproportions in contemporary societies around the world.