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The Government of the Republic of Serbia

In the service of citizens

Serbia, Republika Srpska to promote cultural, economic cooperation

Banja Luka, 9 June 2006

Serbian Prime Minister Vojislav Kostunica and Republika Srpska President Dragan Cavic today in Banja Luka announced a change in the 2001 agreement on special parallel relations as there is a need to promote cultural and economic cooperation between Serbia and Republika Srpska.

Author: Beta

Kostunica, who is heading the Serbian government’s delegation in Banja Luka, said that this agreement needs to change as the circumstances have changed, and pointed out that Serbia will strictly respect the Dayton Accords.

He explained that the agreement signed in 2001 between the Federal Republic of Yugoslavia and Republika Srpska needs to change in order to promote cultural and economic cooperation between Serbia and Republika Srpska.

Kostunica said that the agreement on special parallel relations is fully harmonised with the Dayton Accords and will remain so after the changes.

The Serbian Prime Minister recalled that the Dayton Accords guarantees sovereignty of Bosnia-Herzegovina and the existence of its two entities.

Kostunica said that he and Cavic discussed problems between Belgrade and Banja Luka in cooperation with The Hague as well as the current talks on Kosovo-Metohija status.

There is political will in Serbia to fulfill all obligations to the Hague tribunal, Kostunica noted.

Cavic announced that representatives of Republika Srpska and Serbia will soon agree on a working version of the new agreement and pointed to the importance of further development of the two countries’ economic and cultural ties.

He expressed his assurance that the future of Serbia and Bosnia-Herzegovina is in the EU and pointed out that respect of sovereignty of Western Balkan states is grounds for regional stability and good relations between all countries.

After the meeting with Cavic, Kostunica talked with Prime Minister of Republika Srpska Milorad Dodik and stressed that the strengthening of economic cooperation between Serbia and Republika Srpska should enable the affirmation of the Agreement on special and parallel ties.

Kostunica said that the aim of the Serbian government's visit to Banja Luka is an expansion of economic cooperation and added that there are many firms in Serbia that are interested in taking part in the privatisation of companies in Republika Srpska.

The Serbian Prime Minister recalled that Telekom Srbija is interested in purchasing Telekom Republika Srpska and announced that the problem of Republika Srpska's debt to Serbia will be resolved soon, which was accumulated because citizens of Republika Srpska were treated in health centres in Serbia.

Kostunica voiced satisfaction with the signing of a Memorandum according to which the Serbian government commits itself to help farmers from Republika Srpska in the purchase of tractors of the Serbian Industry of Machines and Tractors.

In the presence of Kostunica and Dodik, the Memorandum was signed by Serbian Minister of Economy Predrag Bubalo and Minister of Agriculture, Water Management and Forestry of Republika Srpska Slaven Pekic.

Milorad Dodik and Vojislav Kostunica

Author: FoNet

Dodik said that the talks with Kostunica focused on establishing an air service between Banja Luka and Belgrade and cooperation between the two airports, as well as on the construction of a common border crossing at Raca between Bosnia-Herzegovina and Serbia.

That would contribute to improving partnership relations between Bosnia-Herzegovina and Serbia, Dodik said and added that the government in Banja Luka will use its influence upon the government of Bosnia-Herzegovina to accept that initiative.

The Prime Minister of Republika Srpska said that they also discussed equalising the position of companies from Republika Srpska and Serbia on the two markets, and the entry of Serbian companies on the market of Republika Srpska, first of all of Komercijalna Banka and Dunav Osiguranje insurance company.

Dodik said that during today's talks the possible holding of a referendum on the status of Republika Srpska was not mentioned.

The Prime Minister of Republika Srpska prepared a working lunch in the honour of the Serbian Prime Minister. The lunch was attended by ministers from both governments. The Serbian government delegation also includes Serbian Minister of Economy Predrag Bubalo, Minister of Energy and Mining Radomir Naumov and Minister of Capital Investment Velimir Ilic.