Let me first extend my heartfelt congratulations to Mr. Freitas do Amaral of Portugal on his election to the distinguished office from which he will guide the work of the fiftieth session of the United Nations General Assembly. I am confident that his experience and commitment to the noble principles of the United Nations Charter will guarantee that this session will be marked by new vigour, commitment and determination. I wish to express our gratitude also to his predecessor, Mr. Amara Essy, for the fine, skilful manner in which he presided over the work of the last session of the General Assembly. The world we live in has been deeply and positively affected by the end of the cold war and national emancipation in Central and Eastern Europe, and Western Asia. Many hotbeds of crisis have been extinguished or are on the way to being resolved, from Eastern Asia and South Africa to the Middle East. However, many problems having a negative impact on international relations remain unresolved, including the crisis in south-eastern Europe. Most disquieting are the dangers of the proliferation of weapons of mass destruction, especially nuclear weapons. The world is still faced with various forms of terrorism. There is a grave danger resulting from the illicit trade in narcotics. Widespread abuses of human rights continue as do the problems of racism, anti-Semitism, xenophobia, and national and religious intolerance. The solution to the problem of underdevelopment requires more concerted and coordinated efforts. In order to be able to deal with the many problems facing the world, it is necessary to have a vital and efficient United Nations. Following the end of the cold war there was a period of optimism, renewed hope and expectation that the United Nations would finally play the role which had been envisaged for it at the time of its founding, almost 50 years ago. However, we have recently experienced severe disappointment at the inability of the United Nations to fulfil all these expectations; this has resulted in the loss of credibility by the United Nations. The causes for its loss of credibility are many and varied, and among the most important is the failure of many United Nations peace-keeping operations to achieve their assigned goals. This is not to say that there have not been successful United Nations peace-keeping missions; this is evident from the operations in Cambodia and southern Africa. One way in which the peace-keeping or peacemaking missions of the United Nations could be improved is by the establishment of a United Nations military force of a more permanent nature or one that could be assembled quickly, consisting of contingents from specific countries or regional arrangements. Such a force should be constructed in such a way as to make sure that its national contingents acted to implement Security Council resolutions and not to promote the policies of their States. In this regard I wish to express the Republic of Croatia’s interest in providing troops for United Nations peace-keeping operations. However, in order to make the peace-keeping functions of the United Nations more effective it is necessary to reform the body which is primarily responsible for the maintenance of international peace and security — the Security Council. It is also important that the composition of the Security Council reflect the new political and economic realities which have emerged since its formation after the Second World War. Due regard must also be given to proper geographical balance as well as to the increase in the membership of the United Nations. Making the Security Council more representative and democratic will also enhance its credibility as it will then be a more legitimate body representing the will of the international community. This will no doubt serve to facilitate the implementation of its resolutions. In this regard, the Republic of Croatia supports an increase in the number of both the permanent and non-permanent members of the Security Council to a point which will not negatively affect its effectiveness. I wish to reiterate Croatia’s support for the admission of Germany and Japan as permanent members of the Security Council due to the actual, as well as potential, contribution of these two countries to the cause of international peace and security and to other aspects of the work of the United Nations. Additionally, serious consideration should be given to the possibility of one or more developing countries from Asia, Africa or Latin America being granted permanent-member status. Despite the various setbacks which I have already referred to, the United Nations still has a critical role to play in resolving many of the world’s problems, especially in regard to the environment and sustainable development. 17 In addition to economic well-being, equal attention should be paid to respect for the human rights of each and every individual. In this regard, Croatia reiterates its support for the work of the High Commissioner for Human Rights, Mr. José Ayalo Lasso, and commends the manner in which he has been performing his duty. As a further method of combating gross violations of human rights and international humanitarian law, Croatia supports the establishment of an international criminal court in the form of an apolitical legal organ of the international community. By its geographical position, history, socio-cultural features, and political and economic orientation, the Republic of Croatia is a part of both Central Europe and the Mediterranean. As a European country in transition, Croatia has already achieved significant progress in the development of democratic institutions and adherence to internationally accepted standards concerning the rule of law and protection of human rights. It is also worth noting that the economic situation has been stabilized and even improved during the past two years, despite the extremely difficult conditions caused by Serbian aggression. Our national development strategy is outward-oriented, while the social policies and legal framework are based on the principles of pluralistic democracy, including an open-market economy. As a country of European civilization and tradition, Croatia’s strategic, political, economic and social orientation is clearly focused on active participation in the process of European integration. Croatia’s harmonization with European legislation and criteria represents a crucial part of its national development. While Croatia is already a member of various European intergovernmental and interregional organizations, the forging of closer relations with the European Union, as well as full membership in the Council of Europe, are the basic pillars of Croatia’s European policy. However, Croatia will seek to adopt an approach to reflecting a balance between its European orientation and its wider global cooperation on a multilateral and bilateral basis. The Republic of Croatia endeavours to contribute to lasting peace and durable stability in south-eastern Europe, which can be achieved only by the normalization of relations among all States based on full and strict respect for and adherence to the principles of the inviolability of international borders, the territorial integrity of all States and the rights of minorities. Croatia has effectively assumed its role as an indispensable factor in the search for peace, stability and security. In this sense, Croatia will continue to cooperate constructively with the relevant international forums and leading institutions or countries with a view to finding a political solution to the present crisis in the region. In this respect — and bearing in mind the nature of the crisis and that its underlying cause has been and remains Serbian aggression — Croatia will continue to cooperate closely and coordinate its political, military and diplomatic activities with the Republic and Federation of Bosnia and Herzegovina, on the basis of the Washington Agreements and other bilateral agreements and arrangements such as the Split Declaration. This is because one of the prerequisites for ensuring long-term stability and progress for Croatia is the settlement of the crisis in neighbouring Bosnia and Herzegovina. Thanks to the clarity and transparency of its national agenda, the decisiveness of its political leadership and its cooperation with the international community in pursuit of its vital national interests, Croatia has succeeded over the course of several years in reintegrating most of its occupied territories, paving the way for the return of some 110,000 displaced persons and refugees to their homes, as well as in revitalizing energy and transport communications throughout the country. Croatia has also managed in very difficult circumstances to reach reasonable stability and to enjoy increased prospects for further development and the strengthening of the democratic system and institutions, combined with a significant level of economic stabilization. Since the outbreak of the crisis in south-eastern Europe Croatia has constantly advocated a negotiated peaceful solution, with the active support and full participation of the international community, and on the basis of the principles of the United Nations Charter and international law. Special emphasis has been placed on the imperative of fully regulating and normalizing Croat-Serb relations. Future relations between these two States are of paramount importance for lasting stability in south-eastern Europe. At the same time, Croatia is actively contributing to the quest for a solution to the issue of the Bosniac-Muslim people, one that would ensure their national rights and provide stability for the region. Furthermore, in the interests of ensuring long-term security and stability, Croatia has advocated the need for the introduction of the confidence- and security- building 18 measures of the Organization for Security and Cooperation in Europe (OSCE). Croatia has always done its utmost to enable the international community to pursue its peace efforts and has consistently demonstrated utmost restraint in resorting to the use of force. When we had to use force, our military always strove to minimize the loss of life and the extent of destruction and to enable the international community to pursue its peace efforts. Croatian military operations have always been in self-defence and in response to the intransigence and non-cooperation of the rebel Croatian- Serb leadership, to the inability of the United Nations peace-keeping forces to fulfil their mandate, to complete deadlock in international mediating efforts, or to direct provocations and terrorist attacks against civilians from the rebel Serb side. In the aftermath of the liberation of almost one fifth of our country in August, isolated instances of unlawful behaviour and human rights abuses have been recorded. My Government strongly condemns all such individual acts and has initiated proceedings against the perpetrators. Croatia believes that its military operations during the first week of August, on both sides of the Croatian-Bosnian border, have substantially changed the balance of power and in so doing have created a window of opportunity for revitalization of the ongoing peace process. Croatia is of the opinion that the joint effects of Operation Storm, the coordinated activities of the army of Bosnia and Herzegovina and HVO (Croatian Defence Council) units, and the actions of the North Atlantic Treaty Organization (NATO) rapid reaction force against the Bosnian Serbs, coupled with diplomatic efforts, have finally opened the way to serious and comprehensive peace negotiations, which will eventually lead to a realistic, balanced and lasting solution to the crisis. Croatia fully supports the current United States peace initiative and the increased decisiveness of the international community, manifested particularly by the United Nations and NATO rapid-reaction force operations and pressure against the Bosnian Serbs. Croatia’s major interest with regard to Bosnia and Herzegovina is in achieving a lasting peace and just settlement of the conflict that would be satisfactory to the constituent peoples and that would ensure stability along Croatian borders; the survival, safety and dignified life of the Bosnian Croats; and mutually beneficial relations and cooperation between the two friendly neighbouring countries. Therefore, Croatia strongly supports the implementation of the Washington Agreements and the Split Declaration and the strengthening of the Federation of Bosnia and Herzegovina and its association with Croatia at various levels and in various areas of cooperation. The prerequisites for lasting stability, security and cooperation in the region include a just and lasting solution to the crisis, reconstruction and development of the countries in the region, normalization of relations between all successor States of the former Yugoslavia on the basis of equal succession and introduction of a new regional order as an integral part of the new European security system. It is Croatia’s firm position that the solution for the peaceful reintegration of the remaining occupied territories of Eastern Slavonia, Baranja and Western Srijem and the former United Nations Confidence Restoration Operation in Croatia (UNCRO) Sector East must be an integral part of the overall peaceful resolution of the crisis in the region, in both Bosnia and Herzegovina and Croatia, within the time-frame of the current peace initiative and the expiration date of the UNCRO mandate. Without progress in the solution of this issue, progress in the settlement of the crisis in Bosnia and Herzegovina cannot be envisaged, and neither can any real stabilization of the situation in south-eastern Europe. Deeply committed to peaceful reintegration, Croatia is willing to immediately open meaningful and constructive talks with the representatives of the Serb population in Eastern Slavonia, Baranja and Western Srijem that should lead to the re-establishment of Croatia’s full sovereignty, the return of forcibly displaced persons to their homes and respect, in accordance with high European standards, for the minority rights of the Serbs and other minority ethnic or national communities — Slovak, Hungarian, Ukrainian and others — in this area. To this end Croatia has already proposed to the local Serbs and the Government of the Federal Republic of Yugoslavia, through the good offices of the international mediators, a comprehensive, elaborate and concrete peace plan in the form of a draft agreement on the peaceful reintegration of Eastern Slavonia, Baranja and Western 19 Srijem into the constitutional and economic system of the Republic of Croatia. Implementation of the proposed agreement must begin with the immediate withdrawal of all military and paramilitary groups not originally from this region, to be followed by the disarming and disbanding, under UNCRO supervision, of the military and paramilitary groups composed of persons who reside in the area. Upon signing the agreement on the peaceful reintegration of the remaining occupied areas, the Federal Republic of Yugoslavia and the Republic of Croatia would recognize each other within their internationally recognized borders and diplomatic relations between these two States would be established at the ambassadorial level. This would be followed shortly by the reopening of the Zagreb- Belgrade highway and railways, the river traffic along the Danube and Sava rivers, the Adriatic pipeline’s outlet to Serbia and telecommunications between Croatia and the Federal Republic of Yugoslavia. The proposed draft agreement provides ample evidence of Croatia’s sincere will and disposition to find a negotiated and just solution to the reintegration of the remaining occupied territories, providing for the legitimate rights of Croatia as a sovereign State and of all its citizens, including its minorities. Along these lines, Croatia participated in the Contact Group negotiations in Geneva and New York. Following these negotiations, I am moderately optimistic that the resolution of the crisis and peace in the region can be achieved in the near future. However, there is no doubt that progress towards a lasting, just and comprehensive peace is contingent on the continued, determined and coordinated efforts of the international community in the maintenance of a global approach to the current peace initiative and the continuation of the international sanctions against the Belgrade regime. In the next several weeks the parties and the international community have to work out a framework, in the form of a package, for the peace accord, which should include several interrelated steps: a solution for Bosnia and Herzegovina; a resolution of the issue of Eastern Slavonia leading to its reintegration into Croatia; mutual recognition, within their international borders, between Bosnia and Herzegovina, Croatia and the Federal Republic of Yugoslavia; and changes in the sanctions regime against the Federal Republic of Yugoslavia as the international community deems appropriate. Upon the acceptance of such a plan, the road to lasting peace and stability will be opened. On behalf of my Government, I would like to thank again all the countries contributing troops to the UNCRO operations in Croatia and underscore our appreciation of their efforts to aid the peace process. Croatia deeply regrets the loss of life and the injuries sustained by members of the United Nations force during their mission in Croatia. Their noble sacrifice will always be remembered and cherished by the Croatian people. In the name of my Government, I am particularly proud to thank the General Assembly for having supported the cause of Croatia, most of all by adopting resolution 49/43, concerning the occupied territories of Croatia. I kindly ask the Assembly to remain steadfast in the contribution it has made through this important resolution and through the individual and collective engagement of most Members’ Governments to the search for a just and lasting peace for Croatia and Bosnia and Herzegovina, as well as for the whole of south-eastern Europe.