Georgievski also said that the VMRO-DPMNE list of candidates for the parliamentary elections would be presented by August 5th. He would lead the list of candidates for the Ohrid-Bitola election district, while the Interior Minister would be the first on the list for one of five other districts.

Asked about Macedonia's relations with Albania after the latest border incident, Georgievski said, "It is not a secret that the relations with Albania have been blowing hot and cold for the last two years, despite the efforts of Macedonia to improve the situation."

This afternoon, Georgievski visited the company for ceramic products "KIK", which markets its goods in Macedonia, Serbia and Kosovo. Earlier today, he also visited the companies "DIER", "11 Oktomvri", "Polet" and the private enterprise "Sobim". At the "11 Oktomvri" factory, he was told about the ongoing production of water pipes, worth about €20 million, for the Dojran Lake "Strezevo"-Bitola irrigation system.

The main points in Casule's speech were the following:

Casule said that these elections will be the grand finale of an effort to defeat terrorism with political tools. He is convinced that Macedonia's citizens will triumph. At the beginning of 2002, in Vienna, he spoke of the necessity of avoiding another crisis over the issue of borders, of reliance on political solutions to conflicts and of the positive changes that have occurred. His presence at this session confirms that Macedonia has achieved what it undertook, he said. Its democratic and political institutions are vital and functioning.

The obligations contained in the Ohrid Framework Agreement and its annexes have been implemented, confirming the political commitment of the Macedonian Government and Parliament to the implementation of this agreement. The legislative changes foreseen under Annex B are already in force, including the Parliamentary Rules of Procedure. And an Amnesty Law has been passed to help confidence building.

The new Parliament will have to adopt the Law on Local Financing, amendments to a series of laws to help its implementation and the Passports Law, the main goal of which is to produce a passport meeting EU standards, enabling Macedonian citizens to travel freely.

As regards stability and security in the country, the re-entry process of the Macedonian police force into the sensitive regions has been completed with the assistance of the OSCE, EUMM and other partners from the international community. This generated stability and confidence and should accelerate the return of refugees and displaced persons, as well as normalization of living conditions. In order to re-establish the rule of law and order, the Macedonian police is implementing a plan for police conduct in the formerly sensitive regions. It should be carried out in co-ordination with OSCE, EUMM, NATO, UNHCR, ICRC and the EU. This plan will help to build confidence not only between the police and the local population, but also more importantly between ethnic communities and with neighbor states. The training of a new multiethnic police is proceeding as envisaged.

With regard to the special police forces, Prime Minister Georgievski promised to transform them into border control police units by the end of the year. The Government's aim is to propose a regional project on border security under which Macedonia and its neighbors will make a joint effort to prevent organized crime and protect the rule of law.

The parliamentary elections on September 15th are a test of democracy in Macedonia. The Government of the Republic of Macedonia is doing everything in its power to make the election process fair, democratic and transparent. This is why the Government asked that a robust ODIHR mission be deployed, especially in the former crisis regions where the rule of law has not yet been fully established. It is a venture in confidence building, since the main object of terrorism is the destruction of democracy.

The Republic of Macedonia is assuming full responsibility for guaranteeing the security of the observer missions. As a joint project with OSCE, 3500 multiethnic policemen will undergo a training seminar on police conduct during the elections. In addition, the Republic has the NATO Amber Fox task force, which is sufficient within its present mandate. It should not be modified nor broadened. The Government is grateful to Macedonia's allies in NATO for understanding that.

There is one very important issue in the context of the elections. The number of displaced persons in Macedonia is still very large. The Government believes that their return to their homes before the elections is of paramount importance. Therefore, Casule urged the EU to intensify its activities in that respect.

The crisis has had devastating economic and social consequences. During the forthcoming period, the main stress should be placed on ensuring stable conditions and providing resources for speedy development. The Government is committed to the necessary reforms. Of particular importance is the implementation of the SAA. Casule called on EU member states that have not yet ratified this agreement, to do so now. He expressed gratitude for the holding of the Donor Conference and the pledges it produces, as well as for the assistance already provided. He regards economic development and prosperity as the most efficient conflict prevention measures. In conclusion, he said that he regards Macedonia's membership in the EU and NATO as the key to the lasting stability and prosperity of the region.