CROATIA and Yugoslavia signed a mutual recognition agreement yesterday, formally ending five years of hostility which followed Croatia's secession. The pact is also an important plank in the construction of a lasting Balkan peace.
The 14 article agreement, signed in Belgrade by the two foreign ministers, normalises relations between the two states, provides for the restoration of full diplomatic relations within 15 days, envisages the return of refugees from the 1991-2 war, and shelves the main territorial dispute between them for further negotiation.
A mutual amnesty is extended to former combatants in both states, with the exception of war criminals guilty of the "gravest violations".
The Yugoslav foreign minister, Mr Milan Milutinovic, described the agreement as "historic" and said relations between the two states constituted the "backbone of peace in the Balkans".
His Croatian counterpart, Mr Mate Granic, said it was the basis of peace and stability in the region, and important for peace and stability in Europe.
Croatia's secession from Yugoslavia in 1991 triggered a fierce conflict between Croatian nationalists and the local Serb minority, supported by the Yugoslav national army. UN peacekeeping forces were deployed along the front line in 1992, but were bypassed last year as the rearmed Croatian army overran Serb held territory.
The last Serb area in the country, Eastern Slavonia, is being run by a UN transitional authority until next year. In yesterday's agreement, Croatia and Yugoslavia (which now consists only of Serbia and Montenegro) agreed to implement an accord signed last year, ceding sovereignty to Croatia.
The dispute over the Prev Laka peninsula, on the southern Adriatic border, will be the subject of further talks. But Croatian officials say their country's sovereignty is no longer in doubt, only the Croatian military presence on the peninsula.
The agreement is widely seen in the West as a significant milestone towards an overall Balkan peace settlement. But it is of some private concern to Bosnian officials who fear that too close co operation between Zagreb and Belgrade could accelerate the partition, formal or informal of their own country.
Bosnian government officials said they hoped yesterday's agreement would be quickly followed by a mutual recognition pact between Bosnia and Yugoslavia.
Amid growing concern over rigging and intimidation in the run up to Bosnia's elections on September 14th, a special electoral commission of the Organisation for Security and Co operation in Europe (OSCE) met yesterday to discuss the possible postponement of a ballot for municipal authorities. But the meeting broke up without a final decision.
The municipal vote is due to take place simultaneously with elections to national and regional authorities. It is, however, one of the most controversial aspects of the elections as its outcome is most influenced by where Bosnians register to vote.
The OSCE has found substantial evidence that Serb and Croat voters have been intimidated by their own leaders to register in the ethnic mini states which they are trying to create within Bosnia.
The ruling Muslim party, the SDA, yesterday repeated an earlier threat to boycott the elections if the municipal polls are not postponed, and if the loophole allowing voters to change their place of registration is not closed.
The OSCE's provisional election commission is due to reconsider the issue early next week. An OSCE source said one likely outcome of the talks is the cancellation of local elections in municipalities where registration violations have been most widespread.