My thanks to the co-chairs for convening this important meeting. All of us have welcomed the transition in the Federal Republic of Yugoslavia. It is important that we now demonstrate our commitment to the Yugoslav people and encourage them to continue to secure their democracy, undertake reform and work with the international community.

For Canada, the support we are providing to Yugoslavia is also a demonstration of the importance we accord to the role of the Balkans in achieving trans-Atlantic stability and prosperity. Yugoslavia’s success as a democracy will greatly advance these goals.

To recognize accomplishments achieved so far, we have encouraged Yugoslavia’s reintegration in the region and into international fora, including the Stability Pact, the OSCE and the UN. We have called on the IFIs to expedite Yugoslavia’s admission to their membership. Like others, we have removed most sanctions. We are also discussing with the Yugoslav authorities participation in regional projects such as SEETEC, which Canada is financing through the Stability Pact to facilitate the establishment of a regional energy grid and market. These steps will do much to improve the lives of Yugoslavs and, indirectly, of their neighbours.

However, the full benefits will take some time to be felt. As we heard during the presentation this morning, Yugoslavia faces a range of pressing humanitarian needs. In response, Canada recently announced a $10 million emergency assistance package. This is in addition to the $22 million provided by Canada to the FRY in the past 18 months. Of the new money, $8.5 million is committed to humanitarian assistance initiatives. In partnership with multilateral agencies and Canadian NGOs, Canada will support a range of winterization, health and refugee integration and return initiatives. Canada recognizes that the timely disbursement of humanitarian aid is critical and is working to have these funds fully disbursed by the end of December.

A further $1 million will be provided for our quick impact Local Initiatives program to permit our Embassy in Belgrade to continue its work on local democratization projects and support to municipalities. For the Serbian elections on December 23, we will also be providing to the OSCE 10 election monitors as well as Embassy assistance.

Canada is pleased at the level of response to the urgent humanitarian needs identified in Yugoslavia. However, as winter deepens and the rush to deliver assistance intensifies, it will be important that the donor community avoid duplication of effort. To this end, we are providing support ($200,000) to OCHA to co-ordinate humanitarian relief.

It is clear that the Yugoslav government has a multitude of tasks ahead of it, but at the same time is challenged by financial and human resource constraints. To assist, Canada has in place a mechanism to deploy technical expertise to the region rapidly. Because energy is one of the most urgent needs, we have already provided an advisor to the Minister of Energy to help with this sector and we are open to deployment of additional personnel. Moreover, we have indicated to OCHA our willingness to channel funds through them to enhance government co-ordination mechanisms if required.

Although the needs in Montenegro are not as pressing as in Serbia, they remain significant and we will continue to provide Montenegro with support. In the past year and a half, Canada has committed $3.5 million for programming in Montenegro. In this most recent tranche of assistance, $500,000 has been earmarked for economic assistance through the EBRD.

Like many of you, we have now conducted an assessment mission, which examined Yugoslavia’s short and longer-term needs. On the basis of the mission’s report, OCHA’s review, and reports we expect shortly from the IFIs, we plan to work with Yugoslav authorities and the international community in developing programs over the next few months to promote economic and political reform, regional cooperation and lasting ties with Yugoslavia, at the same time ensuring that our assistance does not come at the expense of other countries in the region.