administration on municipality level.

The Council welcomes the establishment of UNIPTF's specialized training unit, created to increase the capacity of police to combat organized crime and corruption, as requested in the Bonn PlC conclusions.

7. Parallel Institutions : The Council reiterates that remaining parallel and para- constitutional institutions in the territory of the Federation are illegal and must be dismantled immediately.

The Council invites the High Representative to report to the Steering Board on progress by 1 March 1999.

The Council is further concerned that, three years after Dayton, the Entities and the State have not gained full sovereignty over the territory, governance and economic functioning of BiH.

The Council requests that the High Representative conduct a thorough review of the matter and report to the Steering Board with recommendations for action by 1 March 1999.

8. The Federation capital: The Council takes note of the proposal to make Mostar the capital of the Federation. But it will not endorse such a proposal until Mostar becomes a unified and open city and until the following conditions have been fulfilled:

• a truly unified city administration exists under one leadership with one budget,  and operating effectively;
• Voluntary return of displaced persons and refugees to and within the city and its surrounding areas, is properly underway and fully supported by the authorities; special attention is to be given to the Mostar return plan of April 1998;
• there is a sustainable high level of personal security and the authorities are fulfilling their responsibilities in preventing harassment and intimidation of  minorities. In addition, those responsible for criminal acts of intimidation are being prosecuted;
• there is a sustainable, functioning, and independent Judiciary in the City of Mostar and Canton 7;
• there is demonstrable political support by all communities for the reconstruction of the old city, and no further destruction of cultural heritage;
• permanent offices have been established in the Central Zone for fully functioning joint institutions serving the city-municipality, the canton, and four federation ministries;
• any war crimes indictees in Mostar have been transferred to The Hague; and
• minority representatives fully participate in the six Mostar city-municipality administrations in accordance with existing agreements.

9. Compatibility of Entity Constitutions and the BiH Constitution: In relation to matters pertaining to the constitutional structure of the Entities, their mutual relations and their relations with the common institutions of Bosnia and Herzegovina, the Council expresses its full support to the Constitutional Court of Bosnia and

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