I must say that the United States is very proud to have helped end the terrible war in Bosnia and Herzegovina. However, we are concerned at the recent reappearance in this country of extremist elements like those that caused so much destruction and misery several years ago.

The challenge to the elected governments here from the hard-liners in the HDZ party threatens to set back the progress that Bosnia and Herzegovina has made in recent years. We know the difference between the Croat people of Bosnia and Herzegovina, whose community has brought forth many fine leaders, and a small group who use nationalist propaganda in fighting to preserve their own power and fighting to preserve their own wealth.

We know full well that the overwhelming majority in this country, Bosnian Croats and others, does not want a return to conflict nor return to the law of the jungle. We know the only way forward here is the rule of law, refugee return, trade and investment and reform of discredited institutions from the communist era.

We have seen a great deal of progress in the past year: new moderate governments have come into power replacing the nationalist parties, which brought so much suffering to the people of Bosnia and Herzegovina. Also, refugee returns are way up, privatization is taking hold and a viable banking system has replaced the corrupt payment bureaus.

Nonetheless Bosnia needs to make more progress to become a member of Europe. It needs an election law and I�m pleased that one is well on the way to passage. It needs one military, not three, and regulatory and legal reform. All indicted war criminals must be brought to justice. We�re also encouraged by the significant changes underway in Serbia and Croatia, which have firmly left behind their nationalist dictatorships.

To maintain this momentum in Bosnia and Herzegovina, we in the United States will work with our international partners to counter the forces of conflict, separation and hatred. We will work with the people of good will in Bosnian Croat communities to support their national rights as guaranteed under Dayton. We will meet our Dayton and NATO obligations, working with all who want to move this country towards a stable future as a modern democracy and Euro-Atlantic partner.

Our Ambassador gave me a little document here that is a symbol of what can be accomplished when you start working together: the first unified passport; and I want to congratulate the people of Bosnia and Herzegovina for this small but very important achievement illustrative of the kind of progress that can be made and the kind of progress that must be made so that you can go forward and become an important member of the European community and of the world community.

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