Deal leaves vital issues unresolved threatens winter of strikes

The breakthrough in the Bosnia peace negotiations claimed in Geneva yesterday leaves many vital issues unresolved - notably the precise allocation of territory between the two proposed Bosnian statelets.

It also remains unclear to what extent the Bosnian Serb officials present spoke for the leadership in Pale.

But the agreement does provide a possible framework for a solution.

The main points are:

1. Bosnia and Hercegovina will continue its legal existence with its present borders and continuing international recognition.

2. Bosnia and Hercegovina will consist of two entities, the Federation of Bosnia and Hercegovina as established by the Washington Agreements, and the Republica Srpska (RS).

2.1 The 51:49 parameter of the territorial proposal of the Contact Group is the basis for a settlement.

This territorial proposal is open for adjustment by mutual agreement.

2.2 Each entity will continue to existunder its present constitution (amended to accommodate these basic principles.)

2.3 Both entities will have the right to establish parallel special relationships with neighbouring countries, consistent with the sovereignty and territorial integrity of Bosnia and Hercegovina.

2.4 The two entities will enter into reciprocal commitments a) to hold complete elections under international auspices; b) to adopt and adhere to normal international human rights standards and obligations, including the obligation to allow freedom of movement and enable displaced persons to repossess their homes or receive just compensation; c) to engage in binding arbitration to resolve disputes between them.

3. The entities have agreed in principle to the following:

3.1 The appointment of a Commission for Displaced Persons authorized to enforce (with assistance from international entities) the obligations of both entities to enable displaced persons to repossess their homes or receive just compensation.

3.2 The establishment of a Bosnia and Hercegovina Human Rights Commission, to enforce the entities' human rights obligations. The two entities will abide by the Commission's decisions.

3.3 The establishment of joint Bosnia and Hercegovina public corporations, financed by the two entities, to own and operate transportation and other facilities for the benefit of both entities.

3.4 The appointment of a Commission to Preserve National Monuments.

3.5 The design and implementation of a system of arbitration for the solution of disputes between the two entities.