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DOCUMENT ON
FUTURE RELATIONS BETWEEN MONTENEGRO END SERBIA
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Betreff:              [balkanhr] BETA: DOCUMENT ON FUTURE RELATIONS BETWEEN MONTENEGRO END SERBIA.
Datum:              Mon, 09 Aug 1999 11:20:02 +0300
    Von:              Greek Helsinki Monitor <helsinki@greekhelsinki.gr>
Rückantwort:     balkanHR@greekhelsinki.gr
 
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DOCUMENT ON FUTURE RELATIONS BETWEEN MONTENEGRO END SERBIA.

Following in an unofficial translation of the Document on Future Relations between Montenegro and Serbia

The Foundations of New Relations between Montenegro and Serbia

"With due seriousness and responsibility Montenegro has decided to engage in a dialogue with Serbia on the foundations, framework, and directions of their future relations. These relations shall exclusively be based on the following elements:

- The historic, state, national, and cultural identity of the two countries and the two peoples and the sovereign right of the citizens of both countries to independently decide their fate.

- The functions of the common state, that shall define the character of the common state, will stem from the constitutions of the member countries which -- in their common interest -- they will delegate to the common state.

- On this basis, Montenegro offers this Platform for a dialogue on the future of the common state, which should be formed in accordance with the common interest of the two countries, based on historic and existing circumstances.

THE CHARACTER OF THE FUTURE COMMON STATE OF MONTENEGRO AND SERBIA

(Alternative: The character of the future association of states of Montenegro and Serbia, which could also be its official name -- herefrom referred to as the Association of States of Montenegro and Serbia. Upon request from its members from the Democratic Party of Socialists, the Government offers this alternative proposal)

- The foundation of a new common state of Montenegro and Serbia lies in the unalienable right of its citizens to sovereignly decide the fate of their state and nation. This is the sole basis for determining a common interest for creating a common state of Montenegro and Serbia. Such a common state must secure conditions for democracy, the rule of law, economic development, and integration with the European and the world community. Thereby conditions will be created for overcoming the current problems in relations between the two member countries and its current isolation from the international community.

- Montenegro and Serbia are creating their common state by mutual agreement, aware of the common interest and the usefulness of such an association, building a special structure in it on principles and with relations acceptable to both of them.

- The new common state of Montenegro and Serbia should provide for the successful development of both countries in all sectors of social life. Within such a dual structure, the citizens, their associations, companies, and institutions should have ample possibilities to pursue their interests and needs. Instead of a pyramid of hierarchically arranged state bodies, prone to bureaucratization and alienation, a new model for the common state of Montenegro and Serbia should ensure a pattern of common decision-making, according to clear and easily applicable rules of conduct on the part of both member countries.

- Montenegro and Serbia, independent of each other when issues of state and national sovereignty are concerned, shall pursue their common interests in the absence of any centralization.

- The only acceptable concept for a common state of Montenegro and Serbia is one wherein at the core lies the two countries' constitutional position as the primary source of sovereignty, where they delegate to the common state only a portion of their prerogatives
-- those that in a common state could be equally, rationally and truly realized.
 

PRINCIPLES FOR A COMMON STATE OF MONTENEGRO AND SERBIA

The principles for this common state are as follows:

- Equality of the member countries and their citizens;

- Each member country shall independently and sovereignly carry out all state matters within its authority;

- The common state is in charge solely of matters entrusted to it;

- The competence of the common state shall be interpreted restrictively;

- Matters within the authority of the common state, as a rule, are carried out by the organs of the members countries, and only exceptionally by the organs of the common state;

- The organs of the common state are constituted according to the principle of parity for the most important organs, and according to the principle of proportionality for other organs;

- A foreign policy that ensures the return into the international community and joining European and Euro-Atlantic integrations (U.N., OSCE, the EU, Partnership for Peace, WTO, IMF, the World Bank, the Stability Pact for South-Eastern Europe);

- An open society;

- Respect for international standards, human rights and freedoms, including special minority rights;

- A market economy wherein private ownership and free entrepreneurship will be dominant;

- The rule of law and a law-abiding state;

- Constitutionality and legality.

POWERS OF THE COMMON STATE OF MONTENEGRO AND SERBIA

The powers of the common state of Montenegro and Serbia shall be significantly reduced compared to the prerogatives of the present Federal Republic of Yugoslavia. Thus chances for possible misunderstandings and disputes will be more limited, simultaneously expressing the new character of the common state.

The following matters will be under the control of the common state:

- Defense and external security of the common state;

- The common state's foreign policy;

- The basic elements of the common state's economic system;

- The security system for road, railway, and air transport, while Montenegro will be in charge of marine transport and coastal navigation, and Serbia will be in charge of river navigation;

- Scientific and technological development and development strategy for technical systems (energy, telecommunications, and traffic systems, quality improvement and standardization policy).

Given the negative results of the operation of the federal bodies of the FRY, a constitutive act of the common state should be passed, defining the bodies of the common state, procedure for their formation, and the character of the decision-making process.

The decision-making process in the bodies of the common state shall be regulated in such a way so as to preclude majorization and outvoting, thereby protecting the interests and equal position of the members of the common state.

The constitutive act of the common state shall determine special procedure for adopting acts by the common state's bodies. This special procedure will be applied at the request of one of the members of the common state, in the event the member country involved believes that by a bill or some other draft proposal its interest or right, or its equal position within the common state, is jeopardized. The launching of the special procedure would stay regular legislative procedure concerning the act that had served to initiate it. Within this procedure, a special body constituted on the principle of parity, would debate the disputed draft law or decision, and would submit a report and recommendation within a determined period. Upon completion of the special procedure, regular legislative procedure would either resume, or the bills and decisions in question would be rejected.

By limiting the duration of the special procedure, possibilities for its abuse would be eliminated.

In accord with the above principles, the execution of the duties entrusted to the bodies of the common state should be organized as follows:

THE DEFENSE AND EXTERNAL SECURITY OF THE COMMON STATE

- The common state would have the authority to declare a state of war, a state of immediate threat of war and a state of emergency, with the consent of both member countries.

- The Supreme Defense Council shall reach decisions by consensus between the presidents of the member countries and the common state.

- The president of a member country, as a member of the Supreme Defense Council, is in command of army units located on the territory of the member country he presides over, and in accordance with the defense strategy determined by the Supreme Defense Council.

- Joint military activities of importance to the entire territory of the common state are under the command of the president of the common state, exclusively on the basis of decisions brought by the Supreme Defense Council.

- The army must be professional, and military duty served in the respective member country, for a period of up to six months.

- Commanders of army and the navy are appointed by the president of the member country on whose territory these commands are located, in his office of member of the Supreme Defense Council. The president of the member country shall make these appointments having received a proposal from the chief-of-staff, and with the consent of the Supreme Defense Council. After being sent a proposal for the appointment of a commander of the army or navy, the president of the member country shall appoint or dismiss the heads of corps and departments that are active in the territory of the member country he presides over.

- Having in view the character of the common state, it is proposed that within the Council of Ministers, and within a four-year term, the post of defense minister be alternately held by representatives from the member countries for a two-year period.

FOREIGN POLICY OF THE COMMON STATE

The foreign policy of the common state shall be pursued in the joint interest of the member countries, with their equal participation and control, while the organs of the common state and of the member countries shall share in the authority over this sector.

As an optimal model it is proposed that within the Council of Ministers of the common state, the foreign ministers of the member countries alternate at the post of foreign minister every two years.

The foreign minister of the common state shall have mandatory periodic consultations with the foreign minister of the other member country for the purpose of analyzing the ongoing foreign policy and deciding its future course.

Foreign policy of the common state shall be based on a platform that will ensure return into the international community and participation in European and Euro-Atlantic integration.

On the basis of this platform the member countries shall have full independence in pursuing their foreign policy within their constitutional limitations.

The member countries shall be adequately represented in the common country's embassies and diplomatic-consular missions abroad. The member countries may have separate missions in a foreign country if they have a special interest to do so.

BASIC ELEMENTS OF THE COMMON COUNTRY'S ECONOMIC SYSTEM

Within the authority of the common state the basic elements of its economic system shall be determined, on the principles and in accord with the relations already specified within the part of the Platform dealing with them.

The authority of the common state need provide for full economic independence of the member countries so as to affirm their respective specific features and enable them to attain maximal economic development, for their own benefit, and -- consequently -- for the benefit of the common state.

ROAD, RAILWAY, AND AIRWAY TRANSPORT SAFETY SYSTEM, WHEREIN MONTENEGRO WILL BE IN CHARGE OF MARINE TRAFFIC AND COASTAL TRAFFIC AND SERBIA IN CHARGE OF THE RIVER NAVIGATION SYSTEM

The authority of the common state in regard to the safety of road, railway, and air transport shall be within the determined security system, while all other issues outside it shall be under the control of the member countries. It is necessary for the marine traffic system and the coastal traffic system to be under the control of Montenegro, while river navigation will be in the charge of Serbia.

SCIENTIFIC AND TECHNOLOGICAL DEVELOPMENT AND DEVELOPMENT STRATEGY FOR TECHNICAL SYSTEMS

Duties within this domain shall be carried out by the organs of the common state due to their nature and importance to the member countries, whereby the common interests of the member countries shall be respected.

BODIES OF THE COMMON STATE, ELECTION PROCEDURE, AND DECISION-MAKING

Duties within the authority of the common state shall be carried out via the Parliament, President, Council of Ministers, and Court of the common state.

THE PARLIAMENT OF THE COMMON STATE

The Parliament of the common state shall have one chamber (house), whose members shall be elected on the parity basis by the legislatures of the member countries. The representatives shall be obliged to inform their respective legislatures of what is on the Parliament's agenda.

The Speaker of Parliament and his/her deputy shall come from different member countries, and shall alternately be in office for a two-year period within their four-year terms.

A member country shall have the right to initiate, through its own legislature, special procedure aimed at protecting itself from certain laws and other acts within the authority of the parliament of the common state, through the method described above.

THE PRESIDENT OF THE COMMON STATE

The president of the common state shall represent the common state.

The President of the common state is elected and relieved of duty by the Parliament of the common state, with the prior approval of the legislatures of the member countries.

The President of the common state and the President of the Council of Ministers (the common state's Prime Minister) shall be from different member countries and shall come from the strongest political parties or coalitions in the respective member countries.

THE COUNCIL OF MINISTERS OF THE COMMON STATE

The Council of Ministers has the executive powers within the authority of the common state and has one President (Prime Minister of the common state) and one Vice-President (Deputy Prime Minister), as well as Ministers of Foreign Affairs, Defense, Justice, Finance, and Economic Relations.

The President of the Council of Ministers, that is, the Prime Minister of the common state, and his deputy, that is, the Deputy Prime Minister, must come from different member countries, as well as all the Ministers and their respective Deputies.

A member country is entitled to initiate, through its own government, special procedure aimed at protecting its interests from certain decrees and other acts the Council of Ministers is in charge of in the manner described above.

JUDICIARY BODIES IN THE COMMON STATE

The organ of the judiciary power in the common state is the Court of the common state, which has constitutional and judicial authority.

That member country whose representative holds the post of Chief Justice of the Court (the President of the Court), has one magistrate less on the court than the other member country.

The authority of the Court of the common state will be adjusted to the concept of the common state, and the same member country cannot have a representative at the post of court president for two consecutive terms.

BASIC ELEMENTS OF THE ECONOMIC SYSTEM OF THE COMMON STATE OF MONTENEGRO AND SERBIA

1. BASIC PRINCIPLES OF THE LEVEL OF AUTHORITY

Having in view the integration of Montenegro and Serbia into a common state and the need to protect their respective interests, the establishment of a new economic system requires the following:

- Preservation of functional sovereignty at the level of member country with all ensuing decision-making powers concerning the interests of the respective member countries.

- Securing of institutional sovereignty at the level of member country with the right to form new market institutions.

- A rational approach to determining what takes place at the level of the common state. The common state will be in charge of the following:

a) Making possible the free flow of goods, capital, people, and information;

b) Facilitating and securing integration with international organizations;

c) Reducing costs of organizing and carrying out certain functions. It shall:

- Take into account the objective differences between Montenegro and Serbia and their level of development.

- Allow for the possible suspension of joint authority in the event of special circumstances, jointly defined in advance.

- Define a program of transition from the present to a new, institutional condition.

2. THE DIMENSIONS OF THE ECONOMIC SYSTEM AND ORGANIZING LEVELS

- THE MARKET - The free flow of goods, capital, people, and information within the entire common state.

- THE LEGAL STATUS OF COMPANIES - Only a general outline for their operations will be defined at the level of the common state, whereas all other regulation shall be passed by the member countries themselves.

- FOREIGN TRADE - Foreign trade shall be oriented toward the liberalization of export and imports in accordance with the rules and regulations of the World Trade Organization and the status of the common state as a developing country.

- THE TARIFF SYSTEM - The common state shall have no internal customs duties, shall have unified tariff rates, in line with the WTO rules applying to developing countries.

Enforcement of the tariff system shall lie within the powers of member country. The tariff policy and rates may be supplemented by special agreements to secure specific interests of a member country (strategic products, strategic development ideas, duty free zones, off-shore companies, and similar). If such a special interest of a member country is evident and does not damage the other member country or the common state, it has to be observed.

- THE FISCAL SYSTEM - The fiscal system shall rest upon a responsible fiscal policy, a public and transparent budget, a productive policy of public spending, and shall be harmonized with EU regulations.

Fiscal sovereignty belongs to a member country, while a portion of the member country's revenue shall be transferred to the common state for servicing common needs.

The fiscal sovereignty of a member country is the basis for organizing this function, which also includes its sovereignty in financing this member country's public functions.

Only the basic elements of the tax system shall be defined at the level of the common state, while the system itself and taxation policy will be within the competence of the member countries.

- MONETARY ISSUES - The common state shall be a unified monetary region oriented toward the complete independence of monetary authorities, and control of this independence at the level of member country, with a currency board and a convertible currency, and toward creating conditions for joining the European monetary system.

The common state shall have a convertible currency with quality hard currency coverage and a currency board.

The convertibility of the common state currency shall be determined by law.

The member countries shall have the right to an autonomous monetary system if the monetary union poses a limit to achieving their respective strategic goals due to disturbances in monetary stability or adverse influences of other factors.

- THE FOREIGN CURRENCY SYSTEM AND FOREIGN LOANS RELATIONS SYSTEM -
Such a system requires free hard currency transactions, free currency conversion, and urgent normalization of relations with international financial institutions. This system shall lie within the authority of that level at which monetary power is being carried out, while its executive powers belong to the member countries.

- PAYMENT TRAFFIC - Payment traffic shall be unified for the entire common state and brought up to the payment traffic standards existing in Europe.

- THE BANKING SYSTEM - Common basic elements of the banking system shall exist in accord with the regulations of the EU.

- SYSTEMIC LEGISLATURE - The member countries shall define systemic laws. If their consent is obtained, a common law shall be passed. Systemic laws shall be in harmony with those of the EU.

The respective legislatures of the member countries shall determine conditions for transferring part of the sovereignty from this area to the level of the common state.

(End)


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