6. The Council believes that the security of the peoples of BiH depends not just on improved military coordination and cooperation within the country, but also in developing a closer relationship with relevant security institutions and organizations.

To that end:

The Council invites these institutions and organizations to build on existing security co-operation activities with BiH.

The Council requires immediate and full transparency in all aspects of external support to military forces:

• Croatia, the FRY or any other country, may only provide transparent, publicly accountable assistance to the Entity armed forces;
• Special Relations Agreements Annexes in the area of military cooperation must proceed on the basis of transparency of all funding and any other military assistance, operating through an accountable mechanism. All such external support should promote integration and cooperation among and between all elements of the armed forces in Bosnia and Herzegovina and should also conform with arms control limitations;
• The provision of such external support must be taken into account when determining overall defense expenditure in BiH. The scale and application of external funding for defense should be reviewed during 1999 and reduced over time, with a view to its eventual cessation.

8. The Council notes and welcomes the recent decision of the Republic of Croatia to make transparent its military contributions to the Federation. Without taking any position on the merits of such contributions, the Council urges the FRY and other donor nations, as well as the recipient entities of Bosnia and Herzegovina to undertake similar steps immediately to provide full disclosure to the Council of all sources of military funding before the next Mnisterial meeting.

9. The Council remains deeply concerned at the high level of defense expenditure and at the lack of transparency in defense revenues and expenditures in both the Federation and in Republika Srpska. This situation is unacceptable in the face of competing priorities for economic reconstruction in both entities. Full transparency of all defense contributions and expenditures, budgetary and non-budgetary must be achieved in  order to permit legislative bodies and the Council to make rational analyses of the security requirements and appropriate resource allocations.

The Council requires the Entities to report to the High Representative on a semi- annual basis, using uniform criteria, on its progress towards meeting these targets. The Council notes that, in the event of these targets not being met, the Council will review the overall provision of assistance to the Entity concerned.

10. The Council welcomes the success that has been achieved towards creating a self- sustaining demining program. It urges every effort to develop this in 1999, and welcomes the establishment of the Slovenian International Trust Fund for Demining and Mine Victims Assistance in BiH. It welcomes the efforts of all countries and organizations involved in demining. It urges other countries to join the International Trust Fund in implementing its goals.

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