common management of infrastructure are necessary in order to achieve co-ordination, harmonization or economic efficiency. This is the case for all sectors which have a country-wide component, such as transport infrastructure (including roads), telecommunications, energy, broadcast transmission or post.

25. In the event of failure to proceed as stated above, the High Representative should continue to ask international bodies, such as the UIC, ITU, UPU, UCPTE and others, not to recognize the credentials of the representatives of Bosnia and Herzegovina in those organizations.

26. The Council reminds the Entities that they were required under Article III(5) (b) of Annex 4 to the GFAP to negotiate the transfer to the Institutions of Bosnia and Herzegovina of matters relating to the utilization of energy resources or other co- operative projects. The governments of the Entities are urged to proceed accordingly by June 30, 1999.

27. The Council urges the Parties to refrain from the establishment of any obstacle to trade between the territory of the two Entities, allowing for free and unrestricted circulation of goods, capitals, services and persons all over Bosnia and Herzegovina. Any existing obstacle to such a free circulation, including those consisting of the establishment of additional administrative requirements, should be promptly removed.

Corruption, fraud and fiscal evasion

28. The Council expresses deep concern about continuing corruption and evasion of public funds. It welcomes the High Representative's development of a comprehensive anti-corruption strategy which will be presented to the Steering Board in early 1999. The strategy will provide the framework necessary to identify, develop and implement changes in the structure and procedures of government, to significantly reduce corrupt activities and to establish a public awareness program. The strategy will contain specific action plans identifying the international organizations and local agencies  responsible for implementation, as well as timeliness. The High Representative will take the lead in co-ordinating International Community efforts aimed at eliminating opportunities for corruption, tax evasion and diversion of public revenue; ensuring transparency in all phases of governmental operations; strengthening the legal system and the judiciary; and implementing control mechanisms with appropriate penalties to ensure compliance. A key component of the strategy will be to develop a public awareness campaign to educate citizens about the deleterious effects of corruption on their own lives and on society. The Council emphasizes again that it will not allow the impact of funds expended by donors to be diminished by corruption and fiscal evasion of domestic revenue.

29. To implement the anti-corruption strategy efficiently and effectively, the Council welcomes the High Representative's intention to strengthen the Anti-Fraud Unit and the European Commission's intention to strengthen the Customs and Fiscal Assistance Office (CAFAO) program.The Council recognizes the successful efforts of the European Commission's CAFAO program in the customs field and welcomes its involvement in the area of indirect taxation. It calls upon the European Commission through its CAFAO program, the OSCE, UNMIBH and other involved members of the International Community to work closely together under the co-ordination of the High Representative to combat corruption, organized crime, and other actions which divert public funds and undermine democratic institutions.

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