With courage and determination, Yugoslavia has embarked on a difficult, yet necessary process of political and economic reform. The legacy of misrule, incompetence and corruption from the Milosevic regime, has been replaced by responsible, democratic, and reform-minded government. Yugoslavia is becoming, slowly and painfully, a normal country.

Yesterday’s dramatic extradition of Mr. Milosevic is yet another milestone on the road to normalization. As an old friend of Yugoslavia, Norway welcomes this ultimate expression of Belgrade’s will to co-operate with the International Criminal Tribunal for the Former Yugoslavia.

As Deputy Prime Minister Labus reminded us this morning, it is crucial that the reform process succeeds, not only for Yugoslavia itself, but for the peace, stability and economic development of Southeastern Europe as a whole. Hence, neither Yugoslavia nor the International Community can afford anything less than success.

Significant progress is being made. We are impressed with the dedication and commitment to the reform process. Obviously, there are no quick fixes. Fundamental reform is painful. It gives rise to severe political and economic challenges. It creates hardships for the most vulnerable parts of the population. And it will take time. But there is no alternative.

We are encouraged by the strong commitment to sustained, long-term reform that we have heard this morning . But just as the authorities in Belgrade are intent upon following through, the International Community, too, must stay the course and provide targeted assistance as long as required. Norway is committed to doing her part.

International solidarity and support is important, but so too is the framework for Yugoslavia’s re-integration into the international market-place. Trade will play an important role in Yugoslavia’s economic revitalization.

Norway has actively supported Yugoslavia’s membership in the IMF, the World Bank, and other international financial institutions. Pending the completion of upcoming negotiations on a free trade agreement between EFTA and Yugoslavia, Norway is taking steps to provide GSP conditions for imports.

Norway attaches importance to close contact and cooperation with the Yugoslav and Serbian authorities in its project assistance. Most projects financed by the Norwegian Government are formulated in close cooperation with Serbia’s authorities, and based on their priorities and needs.

Norwegian project assistance to Serbia is focused on institution-building and infrastructure projects, as well as social protection, health and education.

Norway’s project assistance to Montenegro is focused on health, energy and support to refugees and IDPs.

This year’s Norwegian bilateral assistance to the Federal Republic of Yugoslavia (including Kosovo) amounts to 34 million EURO. Of this, 22 million Euro has been allocated to Serbia and Montenegro. About half of the total has already been disbursed, in support of early implementation of several important projects.